U.S. Secretary of State Marco Rubio has issued a stern warning to Panama, demanding immediate action to curb China’s growing influence over the Panama Canal. However, Panamanian President Jose Raul Mulino dismissed the idea of a U.S. military intervention, instead offering talks and cooperation.
On his first overseas trip as Secretary of State, Rubio toured the Panama Canal, accompanied by its Panamanian administrator, as a South Korean-affiliated oil tanker and a Marshall Islands-flagged cargo ship passed through the strategic waterway.
Behind closed doors, however, Rubio delivered a blunt message, reportedly informing Panamanian officials that President Donald Trump believes Panama has violated the terms of the 1999 treaty that transferred control of the canal.
Rubio cited China’s growing control over canal infrastructure, warning that absent “immediate changes,” the U.S. would be forced to take necessary measures to protect its treaty rights.
“The status quo is unacceptable,” said State Department spokeswoman Tammy Bruce, without detailing specific consequences.
Trump, however, has repeatedly refused to rule out military action, and on Saturday, he imposed sweeping tariffs on Canada, China, and Mexico, escalating trade tensions.
The Panama Canal is a critical global trade artery, with nearly 75% of its cargo traffic originating from the United States, while 21% comes from China, according to official data.
Trump and Rubio argue that China’s growing investment and influence in surrounding infrastructure could allow Beijing to block access to the canal in a potential conflict, a scenario they describe as a catastrophic national security risk for the U.S.
Despite Rubio’s warnings, President Mulino downplayed tensions, framing the discussion as an opportunity for diplomacy.
Welcoming Rubio at his official residence in Panama City’s historic district, Mulino rejected fears of U.S. military action, saying he remained committed to upholding the treaty’s validity.
“I don’t feel that there is any real threat at this time against the treaty, its validity, or much less of the use of military force to seize the canal,” Mulino told reporters.
As tensions between the U.S., China, and Panama escalate, the future of one of the world’s most important trade routes remains uncertain.
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